Econ Ch 13

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Transcript of Econ Ch 13

Chapter 13:The Economy's PerformanceLesson 6Macro - MicroeconomicsHow do you measure your success?Section 1 - National Income AccountingCountries are the same!National Income AccountingMeasures all the national economy's performanceGross Domestic Product (GDP)Total dollar value of all final goods and services produced in a nation in a single yearFINALComputing GDPConsumer SectorInvestment SectorGovernmentNet ExportsIs there anything the GDP wouldn't count?So GDP is the total the country makes.

How could we work out how the average each person makes?Divide the GDP by populationPer Capita GDPNet Domestic ProductGDP - DepreciationWhat about items produced outside the USA?Gross National Product (GNP) -measures the total market value of final goods and services produced by U.S. citizens no matter where in the world they reside.National IncomePersonal IncomeDisposable Personal IncomeNational IncomePersonal IncomeDisposable Personal Incometotal income earned by everyone in the economytotal income that individuals receive before personal taxes are paidincome remaining for people to spend or save after all taxes have been paidWhat is inflation?Section 2 - Correcting Statistics for InflationRead through Section 2 (page 224) and complete the handoutDoes anyone know what aggregate means?Section 3 - Aggregate Demand & SupplyAggregate Demandtotal quantity of goods and services in the entire economy that all citizens will demand at any single timeWhat did the Demand curve look like?What do you think the Aggregate Demand curve will look like?Aggregate Supplyreal domestic output of producers based on the rise and fall of the price levelSection 4 - Business FluctuationsDo you think it looks as smooth as this in the real world?Section 5 - Causes and Indicators of Business FluctuationsRead as a class (page 237)ExercisesMatching : 2-4-5-6-7-9-11-15-16-17Multiple Choice: 1-3-4-5-6-7-8-10-12-13-14-15-20real GDP doesn't grow for at least 6 months.Does anyone know what this is called in Brazil?How has Brazilian GDP been? How does it compare to America's? - You tell me next week!